Ark Invest Offloads $22M in Coinbase and Bitcoin ETF

Ark Invest, led by Cathie Wood, sold 34,207 shares of Coinbase, totaling approximately $13.3 million, from its Next Generation Internet ETF (ARKW) on Tuesday. Additionally, the firm divested $8.7 million from its own spot bitcoin ETF following record price peaks for both assets. Ark's investment approach avoids allowing any single holding to exceed 10% of a fund's portfolio, ensuring diversification. Currently, Coinbase (COIN) stands as the second-largest holding in ARKW, with a weight of 7.9%, equating to about $172.8 million as of July 15. Robinhood, representing 8% of the fund at $175.5 million, is the largest position. Coinbase shares reached a record closing price of $394.01 on Monday, marking a 1.8% increase and elevating its market cap beyond $100 billion for the first time. The stock has soared 50% in the past month, driven by a record high in bitcoin prices and a successful IPO by its stablecoin partner, Circle. However, Coinbase shares dipped slightly by 1.5% to $388.02 on Tuesday, with a market cap now at $98.6 billion. In addition, Ark sold 225,742 shares from its ARKB bitcoin ETF, valued at $8.7 million, as part of the same Next Generation Internet fund. This sale followed bitcoin reaching a new all-time high above $123,000 on Monday, before experiencing a drop to below $116,000, recovering to approximately $119,133 on Tuesday—a 25% increase year-to-date. ARKB remains the fourth-largest allocation in Ark's fund, representing 7.2% with a value of around $157.2 million, alongside major holdings in Tesla and Roblox. Overall, Ark's ARKB saw net outflows of $6.2 million on Tuesday, while combined spot bitcoin ETFs generated $403.1 million in net inflows, led by BlackRock's IBIT with $416.3 million. The bitcoin ETFs are currently enjoying a nine-day inflow streak totaling $4.4 billion, bringing total net inflows since their January 2024 launch to $53.3 billion, as per data from The Block. Ark's spot bitcoin ETF contributes $2.9 billion of these cumulative inflows, managing $5 billion in assets amid the ongoing price surge. Valentin Fournier, Lead Research Analyst at BRN, commented: "With ETF inflows holding, altcoins catching up, and sentiment buoyed by macro rumors, we see further upside. Bitcoin has room to run before its cycle top, but we’re allowing altcoins to lead in the short term."